Key things

  • US stocks were mixed on Wednesday, June 14, 2023 due to the Fed’s interest rate forecast and moves in healthcare sector stocks.
  • Fed policymakers have paused the interest rate hike cycle, but have indicated that more hikes will be needed.
  • UnitedHealth’s cost warning sent health insurer stocks tumbling.

US stocks ended mixed after the Federal Reserve suspended interest rate hike, but indicated that further rate hikes will be needed this year to fight inflation. This comes after the market was roiled by a warning from UnitedHealth Group (UNH) on rising costs as geriatric surgeries jumped more than expected.

UnitedHealth’s comments sent its shares tumbling 6%, and shares of Humana (HUM), Elevation Health (ELV) and other health insurance providers have also declined. However, the news boosted shares of Universal Health Services (UHS) and other hospital operators as well as medical device manufacturers such as Stryker (SYK) and Edwards Lifesciences Corporation (EW).

Nike (NKE) was the top-performing stock in both the Dow and the S&P 500 as the athletic shoe and apparel retailer unveiled a new ad campaign featuring NBA Finals MVP Nikola Jokic wearing Nike sneakers. It was the second session in a row of strong gains for Oracle shares (ORCL) after the computer technology firm posted better-than-expected quarterly results and announced new artificial intelligence (AI) cloud service. Shares of chipmakers Intel (INTC), Nvidia (NVDA) and Broadcom (AVGO) progressed while the AI ​​frenzy continued. Vodafone Group Plc (WATER) and CK Hutchison announced they were merging their UK businesses, and Vodafone shares rose.

Shares of regional banks fell as RBC Capital cut its price target on Zions Bancorporation (ZION). Solar energy stocks lost ground, shares of SunRun (RUN) and SolarEdge Technologies (SEDG) tumbling 4%.

The Fed report pushed oil futures lower. The yield on the 10-year government bond decreased. Gold prices changed little. The US dollar weakened against the euro, pound and yen. Most major cryptocurrencies gave up earlier gains and traded in the red.

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